TIDMTRN
RNS Number : 2888J
Trainline PLC
09 April 2020
TRAINLINE PLC
UPDATE IN RESPONSE TO COVID-19
9(th) April 2020
Trainline plc ("Trainline", the "Company" or the "Group"), the
leading independent rail and coach travel platform selling rail and
coach tickets to millions of customers worldwide, today provides an
update on actions the Group is taking in response to the COVID-19
pandemic.
Supporting our people and our customers
Trainline's priorities during the COVID-19 pandemic continue to
be the safety and wellbeing of our people and supporting our
customers to make changes to their travel plans and process
refunds. We have swiftly transitioned all of our teams to work from
home with minimal disruption to our business. In addition, we have
managed unprecedented levels of inbound customer service requests
and improved customer self-serve functionality - introducing
simple, automated change and refund processes on our app and
website - while also working with the rail industry to relax refund
terms and conditions.
Mitigating actions to reduce our cost base
Since our IPO in June 2019, Trainline has delivered strong
growth in net ticket sales, revenue and EBITDA while significantly
reducing net debt.
Given a significant fall in industry passenger numbers over the
past month as a result of the COVID-19 lockdown, we have taken
quick and decisive measures to reduce operating costs and cash
outflows.
The Group's mitigating actions include effectively pausing
marketing and other discretionary spend, introducing a recruitment
freeze, deferring bonus payments and pay reviews for staff for FY
2020, and revising payment terms with some of our suppliers.
In addition, in recognition of the uncertainty generated by the
current environment, the following has been agreed:
-- The Chief Executive has decided to take a 50% salary reduction for the foreseeable future;
-- The Board of Directors and Management Team will take a
voluntary 20% reduction in their Board fees and salaries
respectively for the foreseeable future;
-- The Executive Directors and Management team will defer their annual bonus for FY 2020;
-- We plan to furlough certain teams under the Government's
Coronavirus Job Retention Scheme (CJRS).
We will maintain our investment in the Group's strategic
priorities to drive long term growth and create value for our
customers and shareholders, including the development of innovative
new products and services for our customers.
As a result of the actions across the Group, Trainline's cash
outflow from operating costs and capital expenditure has reduced to
c.GBP8-9 million per month.
As the impact of COVID-19 remains uncertain, Trainline will
continue to monitor developments closely and adapt our response
accordingly.
Secure liquidity position, even in an extended downturn
period
Given the Group's monthly cash outflow from operating costs and
capital expenditure of c.GBP8-9 million (see above), we remain
confident we can operate through an extended downturn period if
required, without any further cost mitigation.
We forecast that Trainline's liquidity headroom will be c.GBP150
million by the end of May 2020. By this time, the Group expects to
have fully completed the working capital outflow arising from
settling pre-existing bookings to train and coach operators as well
as processing refunds to customers.
Clare Gilmartin, Chief Executive of Trainline said:
"Our people and our customers have always been our key priority.
Over the past few weeks, we have worked extremely hard on our
customers' behalf to help them through what has been unprecedented
levels of travel disruption. I would like to thank my team for
their commitment and support, and our customers for their loyalty
and patience throughout this period.
"Trainline is a resilient business and we believe that our
prudent action now strengthens us for the long term, positioning us
well to return to growth once travel restrictions lift."
Full year results
Trainline will publish preliminary results for the financial
year 2020 (the twelve-month period running from 1
(st) March 2019 to 29 (th) February 2020) on Thursday 7(th) May 2020.
The preliminary results will be published at 07.00am (UK time)
through the regulatory news service (RNS) and on the Company's
website ( investors.thetrainline.com ).
Enquiries
For investor enquiries, Andrew Gillian investors@trainline.com
For media enquiries, Victoria Biggs +44 7850 205490 / press@trainline.com
Brunswick Group
Simone Selzer +44 207 404 5959 /
trainline@brunswickgroup.com
About Trainline:
Trainline (www.trainline.com) is the leading independent rail
and coach travel platform selling rail and coach tickets to
millions of travellers worldwide, enabling them to seamlessly
search, book and manage their journeys all in one place via its
highly rated website and mobile app. Trainline is a one-stop shop
for rail and coach travel bringing together millions of routes,
fares and journey times from more than 270 rail and coach carriers
across 45 countries.
This announcement includes forward-looking statements. These
forward-looking statements involve known and unknown risks and
uncertainties, many of which are beyond the Group's control and all
of which are based on the Directors' current beliefs and
expectations about future events. Forward-looking statements are
sometimes identified by the use of forward-looking terminology such
as "guidance", "believe", "expects", "may", "will", "could",
"should", "shall", "risk", "intends", "estimates", "aims", "plans",
"predicts", "continues", "assumes", "positioned", "targets" or
"anticipates" or the negative thereof, other variations thereon or
comparable terminology. These forward-looking statements include
all matters that are not historical facts and include statements
regarding the intentions, beliefs or current expectations of the
Directors or the Group concerning, among other things, the results
of operations, financial condition, prospects, growth, strategies,
and dividend policy of the Group and the industry in which it
operates. No assurance can be given that such future results will
be achieved; actual events or results may differ materially as a
result of risks and uncertainties facing the Group. Such risks and
uncertainties could cause actual results to vary materially from
the future results indicated, expressed, or implied in such
forward-looking statements. Such forward-looking statements
contained in this announcement speak only as of the date of this
announcement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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